ProPhase Labs, Inc. reported a net revenue of $883,000 for the third quarter of 2025, a decline of 38% from $1.4 million in the same period last year. For the nine months ending September 30, 2025, total revenue was $3.6 million, down from $5.3 million in 2024. The decrease in revenue was primarily attributed to a significant drop in sales from consumer products, with no revenue generated from diagnostic services in both periods. The company recorded a gross profit loss of $123,000 for the quarter, compared to a gross profit of $215,000 in the prior year, reflecting a gross margin of -13.9% versus 15.2% in 2024.
Operating expenses for the third quarter decreased to $4.6 million from $6.6 million year-over-year, largely due to reduced personnel costs and professional fees. Research and development expenses also fell to $6,000 from $122,000, indicating a strategic shift in focus. The company reported a net loss from continuing operations of $6.8 million, or $(0.16) per share, compared to a loss of $5.0 million, or $(0.26) per share, in the prior year. For the nine-month period, the net loss remained consistent at $16.0 million, with a loss per share of $(0.41).
Significant operational changes included the cessation of COVID-19 diagnostic testing by ProPhase Diagnostics, which filed for Chapter 11 bankruptcy in September 2025. This decision was influenced by the discontinuation of insurance reimbursements for COVID-19 tests. The company is now focusing on its genomics and consumer products segments, including the development of the BE-Smart™ Esophageal Pre-Cancer Diagnostic Screening Test, which is expected to enter the market in 2026. The company also acquired Nebula Genomics in 2021 and launched DNA Complete, which offers whole genome sequencing services.
As of September 30, 2025, ProPhase had total assets of $65.7 million, a slight increase from $63.2 million at the end of 2024. However, the company reported a working capital deficit of $47.5 million, up from $1.5 million at the end of the previous year. The company’s cash and cash equivalents decreased to $405,000 from $678,000, reflecting ongoing operational challenges. ProPhase anticipates needing additional capital to fund operations and is exploring various financing options, including equity sales and debt financing.
Looking ahead, ProPhase Labs aims to stabilize its financial position while continuing to develop its product lines. The company is optimistic about the potential of its genomics business and the BE-Smart™ test, although it acknowledges the inherent risks and uncertainties in the market. The management believes that with strategic initiatives and potential recovery of unpaid insurance claims, the company can navigate its current challenges and work towards profitability.
About ProPhase Labs, Inc.
ProPhase Labs is a diversified biotech and genomics company developing and commercializing drugs, dietary supplements, and human genomic testing services. Its core segments include genetic sequencing via Nebula Genomics, drug development through ProPhase BioPharma, and consumer health products under TK Supplements. The company focuses on early disease detection, personalized medicine, and health optimization, serving healthcare providers, consumers, and research institutions worldwide with innovative diagnostics and genomic solutions.
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